LONDON TAXI TARIFF REVIEW: Who backed a fare increase and who wanted them frozen?
- Perry Richardson
- Feb 22
- 2 min read
Transport for London (TfL) has reviewed responses to its latest taxi fare consultation, revealing clear divisions between stakeholders. The proposed increase, set for April 2025, aims to balance rising costs for drivers with affordability for passengers. While trade groups support a full inflationary rise, disability advocates and some councils oppose significant fare hikes.
Who Supported the Increase?
Taxi driver organisations, including the Licensed Taxi Drivers’ Association (LTDA), the Taxi Trade Tariff Group (TTTG), Unite the Union, and the United Cabbies Group (UCG), back a fare rise in line with inflation. They argued that a 7.48% increase, reflecting the Cost Index, is necessary to sustain driver incomes and prevent further decline in cab numbers.
These groups stress that any lower increase would worsen financial pressures on drivers, making the industry less viable. They also highlight that road restrictions, low traffic neighbourhoods (LTNs), and congestion delays have already driven up fares. Both TTTG and Unite insist that freezing or limiting fare hikes would not resolve affordability concerns for vulnerable passengers, arguing that solutions should come through better subsidies, such as an improved Taxicard scheme.
FREENOW, a major booking platform, also backs the inflationary rise, citing the need to retain drivers and maintain service levels. They propose additional changes, including higher cancellation fees to protect drivers from lost earnings and higher soiling charges.
Who Opposed the increase?
Disability advocacy groups, including Hackney Disability BackUp and Transport for All (TfA), strongly oppose fare increases, warning they will disproportionately impact disabled passengers who rely on taxis. They argue that fare hikes could worsen social isolation and restrict access to essential services.
London TravelWatch acknowledges the financial pressures on drivers but urges TfL to mitigate the impact of fare rises on vulnerable passengers. They proposed limiting increases on Tariff 3, which applies at night, to prevent pricing out those who rely on taxis for safety reasons.
Several councils also raised concerns. The London Borough of Hammersmith and Fulham argues that fares are already high compared to competitors and should remain frozen. Westminster Council, while supporting the increase, stresses the importance of maintaining the Taxicard scheme to protect low-income users.
What has Been Proposed?
TfL’s recommendations, set to be reviewed by its Finance Committee on 26 February, include a rise in the minimum fare, adjustments to tariffs, and revisions to charges at Heathrow Airport. If approved, the starting fare for a London taxi will increase by 40p to £4.20. Tariffs 1, 2, and 3, which vary depending on the time of day, will rise by 5.05%. Journeys over six miles will continue to be charged at Tariff 2 rates.
The changes reflect a rise in the Cost Index, which tracks expenses faced by taxi drivers, including vehicle maintenance and insurance. Heathrow-related charges are also set for revision. The additional fee for pick-ups from the airport’s official taxi ranks will drop from £2.00 to £1.60, following a reduction in the amount Heathrow Airport Limited (HAL) charges drivers for feeder park access. However, the drop-off charge at Heathrow terminals will rise from £5.20 to £6.00, aligning with HAL’s latest fee structure.
Shared taxi fares from the All England Lawn Tennis Club (AELTC) during the Wimbledon Championships will also increase by £1.50. TfL is reviewing changes to pick-up locations and an expansion of the fixed-fare scheme’s coverage.
